India’s steel industry recorded slower growth in September 2025, with several economic indicators softening due to extended monsoon conditions and moderating industrial activity.
The Index of Industrial Production (IIP) grew 4%, marking a three-month low, while key core sectors such as coal, crude oil, natural gas, and refinery products posted declines. Core infrastructure output rose only 3%, compared to 6.5% in August.
Crude Steel Production Falls
India’s crude steel output fell 4% month-on-month to 13.58 million mt in September as monsoon-driven weak demand pressured mill margins and prompted production cuts. Semis production declined 5% MoM to 680,000 mt.
Steel Trade Rises on Pre-CBAM Buying
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Exports: up 22% MoM to 850,000 mt
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Imports: up 14% MoM to 740,000 mt
Buyers accelerated purchases amid uncertainty over future CBAM-related costs on shipments to the EU.
Iron Ore and Coal Trends
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Iron ore imports: down 12% MoM to 1 million mt, but higher YoY due to competitive global pricing.
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Coal output: down 2% MoM to 68 million mt, with Coal India production falling 4% YoY to 48.97 million mt.
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Coal imports: up 3% MoM to 20.63 million mt as power plants replenished stocks.
Automotive Sector Rebounds
Automobile production jumped 12% MoM to 3.07 million units, the highest since 2004, driven by GST cuts, festive demand, and improving consumer confidence.
However, EV registrations dipped 1.4% MoM as price cuts in ICE and hybrid vehicles narrowed the cost gap.
Other Economic Indicators
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Power consumption: stable at 4,880 million units/day, reflecting cooler weather and slower industrial activity.
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Merchandise exports: up 4% YoY to $38.4 billion, supported by gems and jewelry.
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GST collections: up 1.8% MoM to INR 1.89 trillion, indicating steady domestic demand.
Outlook
Despite September’s moderation, economic activity is expected to rebound in Q3 FY2025–26, supported by festive demand, GST rate cuts, and improving manufacturing momentum.
India’s Manufacturing PMI rose to 59.2 in October, signaling a strong recovery trajectory.
VietnamSteel by Hoa Sen Group
